Outright Gifts
An outright gift is just as its name implies: a gift transferred immediately from you to Carolina. This category can include cash, securities, tangible personal property (gifts-in-kind) or real estate.
Please click below, or scroll, to learn more about making a specific type of outright gifts to Carolina.
If you have questions about any of these gifts, please contact:
OFFICE OF UNIVERSITY DEVELOPMENT
The University of North Carolina at Chapel Hill
208 West Franklin Street, CB#6100
Chapel Hill, N.C. 27599-6100
(919) 962-2336
Gifts of Cash
A gift of cash (most often made by check) is the most popular type of charitable gift. The gift is considered made on the date it is hand-delivered or a check is mailed (postmark on envelope). A contribution on a credit card can be deducted when the charge is made even though the bill is not paid until a later time. You can also make a gift through an automatic bank draft.Because of the availability of the income tax charitable contribution deduction, the net cost to you of a cash gift is lower than the face value of the gift.Gifts of cash are fully deductible up to 50 percent of your adjusted gross income. Any excess over the 50 percent deduction ceiling can be carried forward for up to five additional years.Checks should be payable to The University of North Carolina at Chapel Hill; and mailed to the Office of University Development, Post Office Box 309, Chapel Hill, North Carolina 27514-0309.
Matching Gifts
More than 1,000 corporations and businesses now have programs to match employee gifts of cash either in whole or in part. In some cases, gifts from spouses, directors and retired employees are matched. We urge you to explore this possibility as it can double or, in some cases, triple a gift. Ask your employer about it.
Gifts of Appreciated Assets
A contribution of long-term appreciated assets to Carolina entitles you to an income tax charitable contribution deduction equal to the fair market value of the securities at the time of the gift. And you avoid capital gains tax on any appreciation of those securities. Gifts of appreciated assets are fully deductible up to 30 percent of your adjusted gross income for that year. Any excess of the 30 percent deduction can be carried forward up to five additional years.When making a gift of long-term appreciated assets, you save twice -- on income tax and capital gains tax. You get a charitable deduction for the full fair market value of the gift. And you save the capital gains tax that would otherwise be due if you sold the appreciated asset.
If you would like to make a gift of appreciated securities to benefit Carolina, please call the Office of Advancement Services at (919) 962-8189 for further instructions or click here.
Valuation
Securities are considered donated to the University on the date the certificate and stock power pass unconditionally from your control (the postmark date if mailed or the date on which we receive an overnight delivery package) or the date the securities are transferred directly to a UNC-CH account. For listed securities, the value of the gift is the market value of the stock calculated by taking the mean between the high and the low quotations on the date the gift is donated.
Gifts of Closely-Held Stock
If you contribute closely-held stock to Carolina, you are allowed an income tax charitable contribution deduction for the fair market value of the stock. You also will avoid the potential capital gains tax on any appreciation in the value of the stock. At a later date, the corporation may offer to purchase the stock from Carolina for cash. As long as Carolina is not legally obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.
Gifts of Real Property
You can contribute real property to the University, either as a bequest or, more commonly, by a lifetime transfer, and realize significant tax benefits. The University looks at possible gifts of property on a case-by-case basis. It is a detailed process but very workable and the rewards are great.Gifts of real property can consist of almost any type of property: a personal or recreational residence, a farm or ranch, a commercial building, subdivision lots or any undeveloped parcel of land. The gift can be for all of your interest in the property or an undivided fractional interest.Individual charitable goals and financial needs determine which of the following methods of giving real property is most appropriate for your situation.
Outright Gift
You transfer the property by deed to the UNC-CH Foundation or one of the University's affiliated foundations, and it is subsequently sold unless there is a special reason for holding the particular parcel of real property.
Life Income Gift
Real property is transferred to a charitable remainder trust where it is sold by the trustee. The income is paid to you and/or other named beneficiaries. The income paid to the beneficiaries for life depends on the net proceeds realized on the sale of the real property in combination with a previously agreed upon rate of return. At the death of the last of the life beneficiaries, the assets of the trust pass to the UNC-CH Foundation. Click here for more on life income gifts.
Life Tenancy Gift
In very limited situations, ownership of the real property may be transferred to the UNC-CH Foundation, but you retain the right to live on the property for your lifetime. You receive an income tax charitable contribution deduction for the present value of the remainder interest of the gift. Upon the death of the "life tenant," the property can be sold or used by the UNC-CH Foundation.
Gifts of Personal Property
The University's Ackland Art Museum, the Libraries and other facilities are greatly enriched by gifts of personal property such as rare books, manuscripts, paintings, artifacts and other art objects.
Benefits
For contributing a gift of personal property, you are entitled to an income tax charitable contribution deduction amounting to the full fair market value of the object, provided the use of the object is directly related to the University's tax-exempt purposes. If the gift is not used by the University, the charitable contribution deduction for tax purposes is limited to the initial cost of the object rather than the fair market value. In either case, the deduction is limited to 30 percent of your adjusted gross income, with a five-year carryover of the excess deduction.
